. What is a bank draft? A bank draft is a type of check that is drawn against a bank’s funds, rather than the personal funds of the check writer. This means that the bank guarantees the payment of the check, up to the amount of funds that the check writer has in their account. … Read more
. What is a Wire Transfer? A wire transfer is a type of electronic funds transfer that allows you to send money from one bank account to another. Wire transfers are typically faster than other types of bank transfers, and they can be used to send money to accounts in other countries. How Does a … Read more
In banking, an acceptor definition is a legal definition that refers to a person who is authorized to accept bills of exchange on behalf of another person. What is the meaning of bank term? A bank term is a period of time during which a loan or other financial agreement is in effect. The term … Read more
“Available balance” is the funds in your account that are available to you at any given time. This includes any funds that have been deposited into your account, as well as any funds that have been cleared for withdrawal. It does not include any funds that are currently being held by the bank, such as … Read more
A compensating balance is a minimum amount of money that a bank requires a borrower to keep on deposit in order to qualify for a loan. The compensating balance is typically a percentage of the loan amount. For example, if a company borrows $1 million from a bank, the bank may require the company to … Read more
A bank giro transfer is a type of bank transfer in which money is transferred from one bank account to another using the giro system. This type of transfer is commonly used in Europe and is an efficient way to send money between bank accounts. The giro system is a network of banks and other … Read more
When you book a transfer, you are essentially booking a spot in line for the transfer of funds. The funds will be transferred from one account to another, but the timing of the transfer may be delayed depending on the availability of funds and the processing time of the banks involved. What is a bank … Read more
A financial institution that provides services to another bank is called a correspondent bank. What is the difference between correspondent bank and beneficiary bank? The correspondent bank is the bank through which a payment is made on behalf of the sender. The beneficiary bank is the bank where the funds are being sent. In some … Read more
Positive pay is a type of fraud prevention service offered by banks to businesses. With positive pay, the business provides the bank with a list of checks that it expects to issue during a certain period of time. The bank then compares the checks presented for payment against the list of authorized checks. If a … Read more
An on-us item is a check or other item that is payable by a depository bank to its own customer or to the customer of another depository bank that has an account with the first bank. In order for an item to be considered on-us, it must be presented for payment at the paying bank … Read more
